Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
A public meeting in Boston last week of the Commercial Customs Operations Advisory Committee (COAC), which advises U.S. Customs and Border Protection (CBP) on commercial operations, was awash in the technical minutiae of customs compliance. Subcommittees reported their detailed recommendations in such areas as intellectual property rights, customs bonds, export manifest testing, and data sharing among government agencies, to name but a few. One broader theme that emerged was the need to expand the benefits of process modernization beyond U.S. borders and to bring best practices from abroad to the U.S.
Toward that end, a COAC working group established late last year is developing recommendations for implementing a North American Single Window encompassing the United States, Canada, and Mexico. The U.S. Single Window, part of the International Trade Data System (ITDS) and CBP's new Automated Commercial Environment (ACE) information system, is a pOréal that allows international traders to file information about shipments once and electronically share data with all relevant U.S. government agencies. Mexico already has such a system for imports, and Canada's version, like that of the U.S., is being rolled out in phases. A North American Single Window would provide import and export information to customs and other federal agencies in all three countries, with a stated goal of aligning and streamlining regulatory requirements, data sets, and processing without compromising enforcement and risk assessment.
During the program, CBP Commissioner R. Gil Kerlikowske and other CBP officials held a separate press conference that provided updates on a wide range of topics. Among the highlights:
The "historic" July 23 switchover from CBP's legacy Automated Commercial System (ACS) to ACE was successful, with only minor "IT-type problems," said Cynthia Whittenburg, deputy executive assistant commissioner, Office of Trade. On that day it became mandatory for all electronic cargo entries and corresponding entry summaries to be filed in ACE, and CBP essentially shut off ACS. Technical teams are monitoring the new system around the clock to address any problems that arise.
CBP's staffing shortage has been reduced, but gaps remain. A systemwide review of staffing requirements in 2014 showed a shortage of more than 4,600, and Congress approved funding to hire an additional 2,000 officers that year, said Todd Owen, executive assistant commissioner, Office of Field Operations. Not all of those positions have been filled; staffing at air- and seaports is "very healthy," but it has been difficult to recruit qualified agents at the Southwest land border, he said. However, a 2016 review of staffing requirements shows that staffing needs for 2017 have been reduced by approximately 500, largely due to process improvements and technology upgrades, Owen said. For example, a software "refresh" for radiation pOréal monitors two years ago reduced the incidence of false alarms by 85 percent, significantly cutting down on the number of officers required to monitor the machines and respond to alarms.
Kerlikowske said that "unbelievable progress" and efficiency improvements have been made on the U.S.-Mexico border, thanks to cooperation between the two governments. Among those he cited are recent changes in Mexico's laws to allow armed CBP officers to work alongside Mexican customs officers in that country; as a result, the agencies may now conduct joint inspections of Mexican produce before it enters the U.S. rather than separate inspections in each country. Mexico's customs authority is also sharing security images of railcars crossing into Brownsville, Texas, rather than both sides stopping the cars for screening.
As part of the Secure Freight Initiative, 100 percent of U.S.-bound containers at the ports of Qasim in Pakistan and Aqaba in Jordan are now being screened for weapons and contraband. The images are transmitted in real time to CBP analysts in the U.S., who review and approve or order an inspection, said Owen. Five years into the program, CBP wants to reassess the technology it has been using to screen containers overseas and has put out a request for information from technology vendors, he said.
During the event's opening remarks and the press conference, several speakers noted that Congress is increasingly interested in and supportive of trade enforcement, and that trade's unexpected prominence in the presidential campaign could be beneficial in keeping the trade community's needs and priorities in front of policymakers. When asked to what degree a change in administration affects customs policies and priorities, Kerlikowske, who plans to step down when a new president takes office, said that he couldn't comment, as he had not experienced such a change. However, he did have a recommendation for the new administration, regardless of party: that a new commissioner be appointed and confirmed as quickly as possible, and the position not allowed to remain unfilled for several years, as was the case prior to his confirmation. CBP, he said, is a "sophisticated, complex agency" that has a major impact on national security and the economy and needs leadership.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.
The Boston-based enterprise software vendor Board has acquired the California company Prevedere, a provider of predictive planning technology, saying the move will integrate internal performance metrics with external economic intelligence.
According to Board, the combined technologies will integrate millions of external data points—ranging from macroeconomic indicators to AI-driven predictive models—to help companies build predictive models for critical planning needs, cutting costs by reducing inventory excess and optimizing logistics in response to global trade dynamics.
That is particularly valuable in today’s rapidly changing markets, where companies face evolving customer preferences and economic shifts, the company said. “Our customers spend significant time analyzing internal data but often lack visibility into how external factors might impact their planning,” Jeff Casale, CEO of Board, said in a release. “By integrating Prevedere, we eliminate those blind spots, equipping executives with a complete view of their operating environment. This empowers them to respond dynamically to market changes and make informed decisions that drive competitive advantage.”
Material handling automation provider Vecna Robotics today named Karl Iagnemma as its new CEO and announced $14.5 million in additional funding from existing investors, the Waltham, Massachusetts firm said.
The fresh funding is earmarked to accelerate technology and product enhancements to address the automation needs of operators in automotive, general manufacturing, and high-volume warehousing.
Iagnemma comes to the company after roles as an MIT researcher and inventor, and with leadership titles including co-founder and CEO of autonomous vehicle technology company nuTonomy. The tier 1 supplier Aptiv acquired Aptiv in 2017 for $450 million, and named Iagnemma as founding CEO of Motional, its $4 billion robotaxi joint venture with automaker Hyundai Motor Group.
“Automation in logistics today is similar to the current state of robotaxis, in that there is a massive market opportunity but little market penetration,” Iagnemma said in a release. “I join Vecna Robotics at an inflection point in the material handling market, where operators are poised to adopt automation at scale. Vecna is uniquely positioned to shape the market with state-of-the-art technology and products that are easy to purchase, deploy, and operate reliably across many different workflows.”